Download This PaperFiscal Implications of Trade Liberalization
48 Pages Posted: 15 Feb 2006
Date Written: May 1995
Abstract
This paper examines the relationship between trade liberalization and the budget deficit, which depends on the specifics of country`s economic structure, and the trade regime which is being liberalized. It relates some popular but incomplete approaches to assessing this issue (such as analysis of the foreign exchange budget) to a more comprehensive approach using an applied general equilibrium model. The argument is illustrated using data from the most recent of a sequence of abortive planned liberalizations in Kenya, as well as a number of stylized illustrations. The conclusions are not only that liberalization may be budget enhancing, but that in certain circumstances it may be strongly so.
JEL Classification: D58, E63, F13, F41
Suggested Citation: Suggested Citation
Do you have a job opening that you would like to promote on SSRN?
Recommended Papers
-
Coordinating Tariff Reduction and Domestic Tax Reform
By Michael Keen and Jenny E. Ligthart
-
On Selective Indirect Tax Reform in Developing Countries
By M. Shahe Emran and Joseph E. Stiglitz
-
Tax Revenue and (or?) Trade Liberalization
By Thomas Baunsgaard and Michael Keen
-
Coordinating Tariff Reduction and Domestic Tax Reform Under Imperfect Competition
By Michael Keen and Jenny E. Ligthart
-
Coordinating Tariff Reduction and Domestic Tax Reform Under Imperfect Competition
By Michael Keen and Jenny E. Ligthart
-
Vat Base Broadening, Self Supply, and the Informal Sector
By John Piggott and John Whalley
-
Trade Reform Diagnostics with Many Households, Quotas, and Tariffs
-
By Vito Tanzi
-
Revenue Neutral Trade Reform with Many Households, Quotas and Tariffs